Finnish pet food start-up to build largest Nordic online retailer

Helsinki-based Alvar Pet secured an undisclosed investment from Finnish private equity (PE) firm Juuri Partners, making it a majority stakeholder in the pet firm. 

By acquiring the Finnish online player Verkkokauppa Kivuton, Alvar Pet aims to offer pet owners a “wider range” of veterinarian-developed products and diets customized according to pets’ needs. 

Co-founder and CEO of Alvar Pet Ilari Haataja says that Kivuton, originally a veterinary clinic, has a “deep-rooted” focus on pet health. “By joining forces, we can offer unique nutritional expertise and an extensive range of specialty diets for pet owners who value the well-being of their pets.”

Founded in 2019 and based in Helsinki, Alvar Pet creates personalized meal plans for dogs using sustainable ingredients produced in the Nordic region, which are delivered to customers’ doorsteps regularly. The company claims to serve more than 40,000 pet households across Finland, Denmark and Sweden. 

Potential in the pet industry

Joining Alvar Pet as a strategic partner, Juuri Partners sees potential in the pet segment. 

“We have closely followed the development of the pet market and see interesting growth opportunities, especially in the online segment,” says Anita Ojala, Partner at Juuri Partners. 

“By combining a strong brand in pet wellbeing with an online store specialized in veterinary pet diets, we’re creating a unique player in the market that caters to pet health comprehensively.”

Increased demand

According to Alvar Pet, demand for tailored pet food in Nordic countries has “grown significantly.” The company, which owns a database of over 100,000 dogs, reveals that more than half of them have special needs that pet owners want to cater to through diet. 

“Pet owners are showing increased interest in supporting the health and special needs of their pets through nutrition,” adds Haataja. “Products of Alvar Pet are developed under our veterinarian’s guidance, and Kivuton offers the most extensive range of special diets in the country.”

Both companies aim to make premium pet food more accessible to pet owners across the region. 

The Nordic Petfood Association (NPFA) estimated the number of pets in Denmark, Finland, Norway and Sweden to be 6.7 million in 2021. This is an increase of 4% compared to before the pandemic.